Sustainable Materials Management and The Definition of Solid Waste Final Rule
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1 Sustainable Materials Management and The Definition of Solid Waste Final Rule Rick Rogers Associate Director, Office of State Programs US Environmental Protection Agency Region rogers.rick@epa.gov 04/07/2015 1
2 Overview Overview of the 2015 Definition of Solid Waste Final Rule Discussion of Major Provisions Retaining generator-controlled exclusions with strengthened requirements Replacing transfer-based exclusion with verified recycler exclusion Finalizing remanufacturing exclusion for certain higher-value spent solvents Codifying definition of legitimate recycling Amending speculative accumulation provision to add a recordkeeping requirement Strengthening existing variance and non-waste determination provisions State Authorization Next Steps 04/07/2015 2
3 2015 Definition of Solid Waste (DSW) Final Rule Published: January 13, FR 1694 Effective: July 13, 2015 Retains and revises parts of the 2008 DSW rule to encourage sustainability through recycling, while also improving safeguards against the mismanagement of hazardous secondary materials (HSM) Revisions are EPA s response to concerns raised by stakeholders regarding the potential risks to human health from sham recycling, overaccumulation, and mismanagement of HSM 04/07/2015 3
4 Encouraging Recycling The 2015 DSW final rule encourages recycling by: 1. Retaining the 2008 generator-controlled exclusion for hazardous secondary material recycled under the control of the generator (on-site, same company and toll manufacturing recycling). 2. Replacing the 2008 transfer-based exclusion with a new verified recycler exclusion where off-site transfers for recycling must go to RCRA permitted recyclers or recyclers that have obtained a variance from the state or EPA. 3. Codifying new flexible approaches in the legitimacy definition for closed loop recycling and commodity-grade recycled materials. 4. Finalizing a new remanufacturing exclusion for higher-value hazardous solvents which are remanufactured into commercial-grade products. 04/07/2015 4
5 Improving Safeguards The 2015 DSW final rule increases environmental safeguards by: 1. Codifying a new regulatory definition of the 2008 contained standard in order to prevent mismanagement of hazardous secondary materials during storage. 2. Replacing the 2008 transfer-based exclusion with a new verified recycler exclusion, increasing oversight by the state or EPA and thus preventing unpermitted facilities from receiving HSM, unless they have obtained a variance from the state or EPA. 3. Codifying the sham recycling prohibition, requiring all four legitimacy factors be met, and requiring legitimacy documentation when the recycled product has elevated levels of hazardous constituents. 4. Strengthening provisions related to variances and non-waste determinations, which are granted to facilities on a case-specific basis. 04/07/2015 5
6 2015 DSW Exclusions Revisions to 2008 DSW Rule: 1. Generator-controlled 40 CFR 261.4(a)(23) 2. Verified recycler 40 CFR 261.4(a)(24) replaces transfer-based New in 2015 DSW Rule: 1. Remanufacturing of spent solvents 40 CFR 261.4(a)(27) 04/07/2015 6
7 Generator-Controlled Exclusion Applicable to HSM reclaimed by the generator in three different scenarios: 1. On-site 2. Within the same company 3. Within certain tolling agreements Tolling means that a specialized part of a chemical manufacturing process is contracted out and then returned to the manufacturer EPA reaffirms that when a generator legitimately recycles HSM under its control under the conditions of the exclusion, the generator has not abandoned the material and has every opportunity and incentive to maintain oversight of, and responsibility for, the HSM that is reclaimed. 04/07/2015 7
8 Transfer-Based Exclusion (Replaced) Applicable to HSM transferred off-site to third party recycler In 2011, over 57,000 tons of HSM reclaimed under the 2008 DSW rule Example: Facility in PA recycled 200 tons of spent halogenated solvents (F002) Exclusion has been achieving intended purpose, but has regulatory gaps EPA compared the 2008 DSW final rule and the fully applicable Subtitle C regulations to identify gaps that could lead to the potential for increased likelihood of environmental and public health hazards 04/07/2015 8
9 Verified Recycler Exclusion Intended to ensure that HSM transferred to a third party for recycling will go to verified recyclers, that either have a RCRA permit or have obtained a variance from the state or EPA, thus decreasing the potential for adverse impacts to human health and the environment and allowing opportunities for public participation. Allows EPA and the states to verify that a facility has established rigorous safety measures to manage the material and to review and approve the facilities financial assurance plans before operations begin 04/07/2015 9
10 Verified Recycler Exclusion For reclaimers without a RCRA permit, in order to obtain a variance and become verified, the third-party reclaimer must: 1. Demonstrate their recycling is legitimate, 2. Have financial assurance in place to properly manage the hazardous secondary material, 3. Not have had any formal enforcement actions for RCRA violations in the previous 3 years and not be classified as a significant non-complier with RCRA Subtitle C, 4. Must have the proper equipment, trained personnel, and meet emergency preparedness and response requirements to safely reclaim the material, 5. Must manage the residuals from reclamation properly, and 6. Must address risk to nearby communities from potential releases of the hazardous secondary material and in consideration of existing environmental stressors. 04/07/
11 Exclusion Conditions for Generators: Generator-Controlled: Verified Recycler: 1. Subject to the speculative accumulation provision, including new recordkeeping 2. Must notify using EPA Form Hazardous Secondary Materials (HSM) must be contained 4. Must follow certain emergency preparedness and response requirements 5. Must maintain records documenting offsite shipments and confirmation of receipts for 3 years 6. Must maintain documentation that reclamation is legitimate 1. Subject to the speculative accumulation provision, including new recordkeeping 2. Must notify using EPA Form Hazardous Secondary Materials (HSM) must be contained 4. Must follow certain emergency preparedness and response requirements 5. Must maintain records documenting offsite shipments and confirmation of receipts for 3 years 6. Must send their HSM to a verified reclamation facility (RCRA Part B permitted or obtained a DSW variance) in the U.S. 04/07/
12 Eligible Materials Materials that are eligible include: Hazardous secondary materials sent for reclamation Examples: spent solvents, emission control dust/sludge, pickle liquor from steel production Materials that are NOT eligible include: Materials recycled by use constituting disposal and burning for energy recovery Inherently waste-like materials Materials already excluded from the definition of solid waste under 40 CFR Spent lead-acid batteries 04/07/
13 Notification 2008 rule- Notification required but not a condition of exclusion 2015 rule- Notification required and a condition of exclusion -Failure to notify would potentially result in the loss of the exclusion vs. EPA Form : RCRA Subtitle C Site Identification Form EPA intends to update form -Not likely changes will be made until form is renewed in 2016 EPA will issue interim guidance for using existing form -Planned to be ready in advance of effective date 04/07/
14 Remanufacturing Exclusion Targeted exclusion encourages the recycling of: 18 higher-value hazardous spent solvents used for reacting, extracting, blending, or purifying chemicals in the pharmaceutical, organic chemical, plastics and resins, and the paint and coatings sectors EPA s Green Engineering Program identified remanufacturing of these solvents as an opportunity to obtain large environmental benefits: Production and disposal of solvents covered by this exclusion currently requires large amounts of energy and the solvents are used in very high volumes EPA anticipates greenhouse gas reductions and energy and resource savings result from maximizing the number of uses of a high-purity grade chemical product 04/07/
15 Remanufacturing Exclusion Conditions: 1. Both the generator and remanufacturer must notify using EPA form The generator and remanufacturer must jointly develop and maintain a remanufacturing plan 3. Both generators and remanufacturers must maintain record of shipments and confirmation of receipts for 3 years 4. The spent solvents must be managed in RCRA equivalent tanks and containers, including meeting applicable air emission standards 5. Spent solvents managed under this exclusion are subject to the prohibition on speculative accumulation 04/07/
16 2015 Changes to Existing RCRA Regulations 1. Accumulation date tracking requirement for speculative accumulation provisions 40 CFR 261.1(c)(8) 2. Prohibition of sham recycling and the definition of legitimate recycling 40 CFR 261.2(b)(4) & (g) 40 CFR Changes to the standards and criteria for the solid waste variance and non-waste determinations 40 CFR /07/
17 Legitimate Recycling The 2015 DSW final rule addresses the problems with the 2008 DSW legitimacy regulation by: Explicitly prohibiting sham recycling (i.e., recycling that is not legitimate) in the regulations. This will make the legitimate recycling regulations more transparent and enforceable and will reduce the risk of environmental damage from sham recycling operations. Companies that are complying with current recycling exclusions (e.g., scrap metal recycling) are not required to take any action. Requiring that all four legitimacy factors must be met, and also adding flexibilities into the third and fourth factors to ensure current good recycling practices continue unimpeded. 04/07/
18 Legitimate Recycling Regulatory Language Criteria: 1. Hazardous secondary material must provide a useful contribution to the recycling process or to a product or intermediate. 2. Recycling must produce a valuable product or intermediate. 3. Hazardous secondary material must be managed as valuable commodities. 4. The product of recycling must be comparable to a legitimate product or intermediate. 04/07/
19 Recognizing Common Recycling Practices Alternative management methods (e.g., supersacks instead of barrels) can be used to ensure a hazardous secondary material is handled as a valuable commodity, when appropriate for the materials (factor 3). Commodity standards can be used to determine that the product of a recycling process is comparable to a virgin product, where appropriate (e.g., scrap metal recycling) (factor 4). In cases like closed-loop recycling, where the hazardous secondary material is returned to the industrial process from which it originated, no further demonstration of comparability would be needed (factor 4). When the product of the hazardous secondary material has higher levels of hazardous constituents than the product made from raw materials, but recycling is legitimate, the new standard allows documentation (including certification) to be kept onsite to demonstrate legitimacy, with notification to be sent to the regulatory agency (factor 4). 04/07/
20 Speculative Accumulation All persons subject to speculative accumulation requirements at 40 CFR 261.1(c)(8) : Must place materials subject to those requirements in a storage unit with a label indicating the first date that the material began to be accumulated, or Must document the accumulation period start date through an inventory log or other appropriate method if placing a label on the storage unit is not practicable *Also applies to pre-2008 exclusions for hazardous secondary materials 04/07/
21 Revisions to Existing Variances and Non-Waste Determinations 1. Notice required to the Administrator (or State Director, if the state is authorized) in the event of a change in circumstances that affects how HSM meets the criteria upon which variance has been based 2. Fixed term not to exceed ten years for variance and non-waste determinations, at the end of which facilities must re-apply 3. Facilities to re-notify every two years with updated information 4. Criteria for the partial reclamation variance to clarify when the variance applies and to require, among other things, that all the criteria for this variance must be met 5. For the non-waste determinations in 40 CFR , petitioners required to demonstrate why the existing solid waste exclusions would not apply *Also applies to pre-2008 exclusions for hazardous secondary materials 04/07/
22 State Authorization 2015 DSW rule is more stringent than the 2008 DSW rule States that adopted the 2008 DSW rule (Idaho, Illinois, New Jersey, and Pennsylvania) will be required to modify their programs to be at least as stringent as the federal program Other states will be required to adopt, at minimum: 1. Prohibition of sham recycling and the definition of legitimate recycling, 2. Accumulation date tracking requirement for speculative accumulation provisions, and 3. Changes to the standards and criteria for the solid waste variance and nonwaste determinations. In general, the exclusions in the final rule do not go into effect unless and until the authorized state adopts them. 04/07/
23 Effective July 13, 2015 Next Steps EPA will be working with states to help facilitate state adoption of the new rule and to encourage legitimate recycling of hazardous secondary materials EPA will develop guidance for using EPA Form to notify for exclusions The regulatory status of facilities currently operating under a solid waste exclusion will not be affected, but the facilities responsibilities may be impacted: 1. Speculative accumulation recordkeeping requirement 2. Documentation, certification, and notification requirement for recycling processes which are legitimate despite having levels of hazardous constituents that are not comparable to or unable to be compared to a legitimate product 04/07/
24 For More Information DSW rulemaking website: Contact Information: Rick Rogers Sara Kinslow /07/
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